Abstract
Mobile radio frequency identification (RFID) services are expected to be launched in full-scale as a new service option in the telecommunications service market following the development of RFID technology and maturation of the IT infrastructure. Importance of customer loyalty has been widely recognized in business marketing for a long time, and the customer loyalty enhancement strategies for mobile RFID services is of significance to telecommunication carriers in terms of new business value creation. This study identifies the factors affecting customer loyalty for mobile RFID services and presents telecommunication service managers with information useful for improving customer loyalty for related new services. The data was collected from customers with some experience in the use of mobile RFID services through an online survey for an empirical analysis. And the collected data was analysed with structural equation model to verify the cause and effect relationship among perceived quality, switching cost, perceived value, customer satisfaction, switching barrier and customer relationship. The analysis showed that the quality of tag recognition and content quality proved to have a direct impact on the customer satisfaction, whereas connection quality and ease of use would rather indirectly than directly influence customer satisfaction by perceived value. Perceived value and satisfaction affected the loyalty. Adaptation cost affects switching barriers, the higher the switching barriers, the stronger the loyalty. Based on the results of the empirical analysis, practical implications were given. What is more, mobile RFID customers were divided into two groups that are favourably and unfavourably disposed toward the service, and suggested customer loyalty improvement strategies adapted for each group.
Highlights
Radio frequency identification (RFID) is the process and physical infrastructure by which a unique identifier within a predefined protocol definition is transferred from a device to a reader via radio frequency waves (Banks et al 2007)
The quality of connection and ease of use, were found to affect perceived value but have no direct relation with satisfaction. These results will mean that connection quality and ease of use would rather indirectly than directly influence customer satisfaction by perceived value which has a direct effect on satisfaction; as perceived value and satisfaction affected the loyalty, it is significant to manage perceived quality factors which is the antecedent of the two
This study has attempted to find strategies to enhance the loyalty of customers to mobile RFID services by identifying the factors that affect their loyalty
Summary
Radio frequency identification (RFID) is the process and physical infrastructure by which a unique identifier within a predefined protocol definition is transferred from a device to a reader via radio frequency waves (Banks et al 2007). The global RFID market is expected to grow from US$ 5.63 billion in 2010 to US$ 24.13 billion in 2021. The RFID reader market for cellular phones, valued at US$ 0.18 billion in 2010, is forecasted to grow to US$ 1.6 billion in 2021 (Das, Harrop 2010). The service is currently tried in various fields. It is being used or under the pilot test in retail stores around the world (Boeck et al 2011); a mobile RFID based tour service system is developed (Hsu, Liao 2011); a customer in a hotel can lock or unlock his room with a mobile device equipped with RFID based near-field communication technology (Sheivachman 2012). Mobile RFID services are attracting related industries’ attention as a new service model of potentially high business value
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